China stocks rise, aided by earnings, as state support seen

SHANGHAI Aug 31 (Reuters) - China stocks firmed on
Wednesday as the earnings season drew to a close, with interim
results wrong-footing pessimists amid signs that state-backed
investors have bought blue-chip shares in a bid to help
stabilise the market.

For the month, the CSI300 and SSEC climbed 3.9 percent and
3.6 percent, respectively.

The country's nearly 3,000 listed firms have all published
half-year results, posting a 5.5 percent drop in their combined
net profit, according to official China Securities Journal.

But to the relief of many investors, three-fifths of the
companies reported earnings growth, while bloated sectors such
as steel and coal showed tentative signs of recovery.

"Everyone is saying the economy is lousy, but if you look at
listed companies results, they're not as bad as some had
expected," said David Dai, Shanghai-based investor-director at
Nanhai Fund Management Co.

Investors drew confidence from company disclosures that a
group of state-backed investors in the first half increased
holdings in a range of big-caps including PetroChina
, Bank of Communications, Agricultural
Bank of China and CRRC Corp.

Sentiment was also aided by a surge in the property sector
. Bellwether Vanke jumped 10 percent in
Shanghai on news that Nexus Capital has raised its stake in
Vanke's Hong Kong-listed shares.
(Reporting by Samuel Shen and John Ruwitch; Editing by Richard
Borsuk)